Why big tech is moving massively into healthcare
Google bought fitbit. This is just the latest move of the data giant officially joining the race to save healthcare – and make billions doing so. The valuable health data fit bit has been collecting from its customers for over a decade will find its way to its health focused Verily subsidy. The same goes for the data drug giant Sanofi will supply in the “innovation lab” the companies set up June this year (here).
Preventive care with fitbit, drug discovery with Sanofi – Google as well as Apple, Samsung and Microsoft are eyeing healthcare as the next big vertical. Here is why:
- With close to 12 trillion Dollars Healthcares market size is big enough to move the needle for companies that sport a trillion or so in market cap
- Huge inefficiencies make healthcare a sector prone to disruption. From hospitals to pharma companies the healthcare sector is full of conglomerates that are able to manage state regulations. Not a hotbed for innovation indeed.
- Large patients’ records are just waiting to be handled and analyzed by the smart algorithms of Google, Apple and Co. Be it just to cut costs in administration or discover new patterns for gene therapy.
It is a perfect match – so expect more moves from big tech into big pharma and stay healthy!